Roam Refined

What’s the difference between Made in Canada and Product of Canada?

At Roam Refined, we place a special emphasis on Canadian products, but what does Made in Canada really mean? How is it different from a Product of Canada? And does it matter if a company is based in Canada but manufactures overseas?  We know all these terms can be unclear, so let’s untangle them.

Canada has four federal statutes that govern the labelling of manufactured goods. The Competition Bureau is the federal “watchdog” that oversees the Canadian marketplace and puts guidelines in place to ensure labels and advertising aren’t misleading. It’s important to note they only cover manufacturing of goods, food items fall under the Canadian Food Inspection Agency.

Made in Canada

Products with Made in Canada labels need to meet the following parameters:

1. at least 51% of the total direct costs of producing or manufacturing the good have been incurred in Canada;
2. the last substantial transformation of the good occurred in Canada; and
3. the claim is accompanied by an appropriate qualifying statement, such as “Made in Canada with imported parts” or “Made in Canada with domestic and imported parts”.

Based on the above qualifications, consumers might find t-shirts labelled Made in Canada, but that doesn’t necessarily mean the fabric was milled in Canada. Province of Canada is a good example of this; they use imported organic cotton, but manufacture  their Made in Canada Collection in Canada.

Product of Canada

Items with Product of Canada labels need to follow these guidelines:

1. at least 98% of the total direct costs of producing or manufacturing the good have been incurred in Canada; and
2. the last substantial transformation of the good occurred in Canada.

It’s easy to see how for most consumer goods that we recommend here at Roam Refined it would be difficult to meet these qualifiers, mainly the 98% of direct costs of producing the goods must be in Canada. Using the t-shirts example, the fact is Canada does not commercially produce cotton, therefore it’s not possible for t-shirts containing cotton to reach the 98% threshold.

If you want to learn more about these two distinctions you can do it here on the Government of Canada’s website.

What about designed in Canada and Canadian based Companies?

According to the Competition Bureau, Designed in Canada means the concept, creative, or  engineering work took place in Canada, but the manufacturing took place overseas. Just because something was made overseas, doesn’t mean it wasn’t made ethically. There are a number of reasons a Canadian company might manufacture overseas including:

1. Cost.  The cost of manufacturing in Canada is high, due to our cost of living. Countries with lower costs of living can manufacture goods for less.
2. Specialty machinery. The machinery needed to manufacture the goods might not be available in Canada.

For the consumer, purchasing designed in Canada goods is still a win for the Canadian economy. Not all Canadians can afford Made in Canada products, as they typically cost more. Purchasing Designed in Canada goods still keeps more money in Canada and helps the Canadian economy. Companies designing in Canada are still providing Canadians with high-value jobs at their corporate headquarters or remotely across the country.

We started this post with a goal to untangle the confusion behind these labels, and hopefully, you now feel more confident in navigating the differences. Whether you choose “Product of Canada,” “Made in Canada,” or “Designed in Canada,” each choice helps support the local economy in its own way. Understanding these nuances empowers us to be more conscious consumers, and at Roam Refined, we believe that every effort to support Canadian business, no matter the label, strengthens our community.

Ready to put this knowledge to use? Check out our guide to The Best Canadian Clothing Brands for Travel to see our top picks for supporting local businesses.